Fairfax Media
’s management shake-up is further recognition that it no longer makes sense for print and digital to be operated under different business units while seeking to make the most of its healthier businesses such as Domain.

Reorganising the company into five business units and merging most of its publishing operations into one unit will challenge many who are nervous about the impact on quality journalism from one of the biggest structural shifts in the media industry’s history.

However, Hywood made it clear in February those businesses once considered sacred cows were no longer immune. It’s the adapt-or-die approach that is affecting almost every industry from financial services to retail and manufacturing.

Investors were cautious about the revamp announced this morning as they wait for more detail. Fairfax New Zealand boss Allen Williams has been promoted to head up the new publishing division which incorporates mastheads The Sydney Morning Herald, The Age and other Metro Media operations with the Financial Review Group and regional media.

UBS analysts say the restructure is expected to drive growth in Domain, which will now operate as a separate business unit housing its print and digital elements. UBS estimates Domain has a 50 per cent share in NSW and Victoria but only 30 per cent nationally.

Giving the digital businesses more autonomy is key to the strategy. Stayz, RSVP and TenderLink will be housed in a separate Digital Ventures unit.